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Some Common Stock Market Investing Terms

Options: Options are the right but not the
obligation to buy a stock at a certain price for a specified amount
of time. When you buy an option, you really don't want to exercise
that option; you want it to increase in price and then sell it.
Call Options increase

Options: Options are the right but not the obligation to buy a stock at a certain price for a specified amount of time. When you buy an option, you really don't want to exercise that option; you want it to increase in price and then sell it. Call Options increase in value if the stock increases in value. Put options increase in value when the stock falls in value. (YES it is true that you can make money in the market even when the stock is falling like a stone!)

Charts: Although no one can really say what tomorrow will bring, charts are like road maps showing where a stock has been and how it handled certain situations. By learning to read a chart really well you have a much better idea of what a stock may do in the future. We think good chart skills are very important, and you should learn all you can about reading them.

Splits: a good company declares a split when it thinks that it's stock price has gotten to a level that puts it out of the grasp of most buyers. The most common type is a 2-for-1 split, and that simply means that if you own 100 shares of XYZ for 50 dollars and XYZ announces a split, you will then own 200 shares at 25. The value stays the same, but what interests us as traders is that when a company announces one, it usually boosts the price a lot. These are some of our most profitable plays, and learning how to play them is an absolute necessity.

Buy Backs: This is when a company is so high on it'self it announces that they think their own stock is a great investment and are going to buy back a block of their own stock. That usually tends to make the stock rise and can be very profitable.

FDA Approvals: When a drug company announces it got FDA approval for a new drug, the stock generally flies on the news. That is because the market for it could be huge, or in the case of Pfizer's drug Viagra, it could become the biggest drug in the world. FDAs are big news.

Earnings Reports: If a company beats what the analysts thought they would make for a fiscal quarter, that is big news and the stock usually flies. If they miss estimates LOOK OUT BELOW as the stock can be severely punished!

Slams: This happens when a company loses a gazillion points in one day, usually over bad earnings, or a product recall. They are usually overreactions and can bounce up quite nicely the next day!

Peaks: Just the opposite of a slam, peaks occur when a stock has risen too fast and can't hold the price. People who trade put options love peaks as they make money as the stock falls back down.

Upgrades: An upgrade is when an analyst from a financial institution thinks a stock should be considered a buy or an outperform. This is his way of saying "this company is cheap at this price, buy it." Usually a strong upgrade from a big institution is worth some points.

Sectors: All stocks fit into some type of category. For example, Kmart would be in retail and American Express in financial. It is wise to recognize who is in what "sector" so that you know what is being talked about when you hear "the transports are hot today" (Delta, American Air, United, Trucking, etc.)

Bottom Fishing: This is a term used to describe looking at very, very cheap stocks with the hope that maybe someday...

Rolling Stocks: These are stocks that seem to roll up to a certain price level, then roll back down again only to roll back up again!

Breakout: This refers to stocks that just broke through that upper price level they have been rolling to and are now in blue-sky territory. These can be very powerful movers!

Penny Stocks: This is a term of the trade for stocks that cost less than 5 dollars. (Also notice that no options are available for stocks under 5)

IPOs: This is an Initial Public Offering, and what that means is a company that wasn't publicly traded is now available to trade.

Fundamentals: This is what we can use to determine if a stock is over or under value. It is a collection of data about the company such as price to earnings ratio, market capitalization, sales, debt, etc.

Insiders Club Trading Course Part 5

We compiled a list of “top ten things you can do to be a
better “investor” than just about anyone you know.
Please read through them, they really are good points.

Top Ten Ways to Outperform 90% of
Investors

1) Use a Margin Account Only for Shorting
Stocks.

Margin–borrowing from

Options Tutorial All In One Article!

Options for Beginners

Recently I've had a rather unexpected increase in the amount of folks asking me about options. I think the reason is simple, with so many stocks trading at insane prices, people are thinking that maybe going the option route makes more sense...but they're afraid of them. So for the next few issues we're going to break down common options and make it so that anyone can understand them. ( AND NOT FEAR THEM!) Basic options are just a trading tool and anyone can use them once you understand them.

For those of you who are new to the concept of options, take heart. Everyone started out just like you with no idea of what these things really are. For years the common thoughts were that options were for the "big boys" only and the "big boys" tried their best to keep it that way. Years ago I remember analysts saying that the average person shouldn't even think about trading options because he couldn't ever really understand the workings. Baloney! There is no reason that the average investor shouldn't use the tools available to make money in the market and options are some very important tools. So right off the bat, get it out of your mind that options are too advanced or too anything for you to understand. They are simply another investment tool, and if you understand how they work, and use them correctly, they will put money in your accounts.

Some Common Stock Market Investing Terms

Options: Options are the right but not the
obligation to buy a stock at a certain price for a specified amount
of time. When you buy an option,

Insiders Club 7-23-2011

Weight Loss For Everyone and the Magic
Bullet.

I had to think long and hard about putting together this booklet.
The reasons are many, but mostly what I didn't want was a bunch of
people saying "this guys supposedly a market guru and now he

Weight Loss

Weight Loss For Everyone and the Magic
Bullet.

I had to think long and hard about putting together this booklet.
The reasons are many, but mostly what I didn't want was a bunch of
people saying "this guys supposedly a market guru and now he

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